Thursday, 1 September 2016

Raytheon and Lockheed Martin to partner Tata Power in building Javelin missile in India

US side commits to defence ministry and Tata Power SED that 70 per cent by value of the Javelin will be built in India

By Ajai Shukla

Business Standard, 1st Sept 2016

Even as Defence Minister Manohar Parrikar,
currently on a three-day visit to the US, assured American and Indian industry
that the New Delhi is opening the doors for business, two US defence giants ---
Raytheon and Lockheed Martin --- announced they would partner Tata Power in
manufacturing the Javelin anti-tank guided missile (ATGM) in India.

The Javelin Joint Venture (JJV) ---
consisting of Raytheon and Lockheed Martin --- says it is partnering the “Strategic
Engineering Division” of Tata Power (Tata Power SED) to “create a strategy to
co-develop and produce the Javelin missile system and integrate platform mounts
to meet Indian requirements. This includes ground combat vehicle, dismounted
infantry and rotorcraft applications.”

Sources close to the long negotiations that
preceded this announcement tell Business Standard that the US side has
committed to Tata Power SED and to the defence ministry that 70 per cent by
value of the Javelin would be built in India.

The FGM-148 Javelin is reputedly the
world’s most advanced man-portable ATGM. It is carried and fired from vehicles,
or by infantry soldiers, at tanks, fortifications or helicopters as far as 4,000
metres away. Unlike missiles currently in service, the Javelin is a “fire and
forget” missile that does not need to be guided during its flight time.
Instead, the operator aims at the target, locks on the missile, launches it,
and scurries back into cover while the missile’s infra-red seeker homes onto
the target.

Javelin is competing in India with the
Spike ATGM --- built by Israeli company, Rafael Advanced Defence Systems. On
October 25, 2014, the defence ministry had cleared the Rs 3,200 crore
procurement of 300 Spike missile launchers and 8,500 missiles for India’s
350-plus infantry battalions, with more to be built at Bharat Dynamics Ltd,
Hyderabad. However, India’s requirement is far larger --- it must equip not
just its infantry, but also mechanised infantry battalion equipped with the
BMP-2 infantry combat vehicle and, later, the Future Infantry Combat Vehicle.

US industry sources say they are not just
relying on vehicle-mounted orders. With the Israelis mired in negotiations with
the defence ministry, there is no certainty yet that Rafael would get the
infantry ATGM order.

The JJV and the US Department of Defense
(the Pentagon) have been pushing hard in Indo-US defence consultations,
particularly the Defence Trade and Technology Initiative (DTTI) for India to
consider the Javelin. Now, with Washington amenable to providing high technology
for manufacturing the Javelin in India, there could be a favourable re-think.

The establishing of production by the JJV-Tata
SED combine would be contingent on winning a substantial order from the Indian
military. The consortium gave a presentation to the defence ministry earlier
this month, which was also attended by top army generals.

The JJV-Tata SED consortium committed to
transferring key technologies for manufacture in India. This included manufacturing
smokeless propellant, and assembling the missile seeker --- the Holy Grail of
missile technology.

Says Tata Power SED chief, Rahul Chaudhary:
“This would significantly raise India’s industrial capability and capacity,
since no Indian manufacturer has so far built missile launchers and missiles in
large numbers. And some of the technologies that Washington has agreed to
provide will establish an important precedent for future technology transfer to
India.

Meanwhile, in Washington, the US-India
Business Council (USIBC) on Tuesday handed Parrikar a report with
recommendations on “Ease of Doing Business in India”. Said USIBC president,
Mukesh Aghi: “Our members are keen to pursue joint American and Indian private
sector partnerships to support Prime Minister Modi’s forward- leaning defense
procurement reforms. Our recommendations aim to expand investment flow into
India’s defense sector”.

IT is surprising to see India's haughtiness in buying critical defense material. Its defense is so outdated, yet other advanced countries have to literally beg India's to buy its stuff. India should be grateful, that the Western countries are coming to India's aid in defense matters.